When is an Asset-Based Loan Suitable in Malaysia?
An Asset-Based Loan may be suitable if your business:
- Owns residential, commercial, or industrial property with available equity.
- Needs interim funding and leveraging the available equity of your properties.
- Has financing needs that may not fit conventional lending criteria.
Rather than replacing your bank, Asset-Based Lending works alongside your existing facilities, giving your business another source of financing when required.
Why Malaysian Businesses Use Asset-Based Loans
Complements Existing Bank Facilities
ABL provides additional financing by complementing your current banking arrangements.
Property-Backed Assessment
The assessment considers both your property's value and your repayment capacity, providing another financing option where conventional bank assessment may not fully meet your funding requirements.
Repayment Options That Match Your Cash Flow
Choose from interest-only, principal-and-interest, or hybrid repayment structures based on your business needs.
Conservative Financing Structure
Financing is capped at a maximum of 50% of the property's market value, helping maintain prudent leverage.
Transparent Costs
Professional, consistent communication avoids the friction that informal collections often create between you and your buyers.
Apply NowLoan Structure & Repayment Options
| Option |
Repayment Structure |
Suitable For |
| Interest-Only |
Monthly interest payments with principal repaid at maturity. |
Businesses are seeking to preserve working capital. |
| Hybrid |
Interest-only during the initial period, followed by principal and interest repayments. |
Businesses are expecting future revenue growth. |
| Principal & Interest |
Equal monthly repayments throughout the financing tenure. |
Businesses are preferring consistent repayment schedules. |
| Option |
Repayment Structure |
Suitable For |
| Interest-Only |
Monthly interest payments with principal repaid at maturity. |
Businesses are seeking to preserve working capital. |
| Hybrid |
Interest-only during the initial period, followed by principal and interest repayments. |
Businesses are expecting future revenue growth. |
| Principal & Interest |
Equal monthly repayments throughout the financing tenure. |
Businesses are preferring consistent repayment schedules. |
Financing amounts range from RM300,000 to RM3,000,000, subject to the property's value and the borrower's repayment capacity.
How Asset-Based Lending Differs from Conventional Bank Financing
| Asset-Based Loan |
Conventional Bank Financing |
| Financing is assessed using both property value and repayment ability. |
Primarily assessed based on financial statements and credit profile. |
| Multiple repayment structures available. |
Generally follows standard repayment structures. |
| Suitable for businesses with available property equity requiring additional financing. |
Suitable for businesses that meet conventional lending criteria. |
| Asset-Based Loan |
Conventional Bank Financing |
| Financing is assessed using both property value and repayment ability. |
Primarily assessed based on financial statements and credit profile. |
| Multiple repayment structures available. |
Generally follows standard repayment structures. |
| Suitable for businesses with available property equity requiring additional financing. |
Suitable for businesses that meet conventional lending criteria. |
Many businesses use Asset-Based Lending to supplement their existing financing arrangements while maintaining long-term relationships with their banks.
Who Should Consider an Asset-Based Loan?
This financing may be suitable for:
Businesses require additional financing beyond existing bank facilities.
Business owners with residential, commercial, or industrial property that have available equity.
Companies seeking interim funding before refinancing or asset disposal.
Eligibility Criteria
- Malaysian incorporated companies (Sdn. Bhd.)
- Business owners holding eligible property under personal or company ownership
- Residential, commercial, or industrial properties with individual or strata titles
- Freehold properties or leasehold properties with more than 60 years remaining
- Owner-occupied properties or those tenanted for at least 12 months
Properties such as Malay Reserved Land, agricultural land, temporary titles, and short-term rental units (for example, Airbnb properties) are not eligible.
Why Choose IFS Capital for Asset Based Loan
IFS Capital focuses on secured business financing and works with businesses that require additional funding backed by property assets.
Businesses choose IFS Capital because we offer:
- Financing designed to complement existing banking relationships (licensed under the Moneylenders Act 1951).
- Independent property valuations conducted by licensed panel valuers.
- Standard legal documentation handled by experienced panel solicitors.
- Transparent commercial terms with upfront disclosure of fees and charges.
- Responsive processing once valuation and legal documentation have been completed.
Our objective is straightforward: to provide businesses with an additional source of financing while helping them preserve their existing banking relationships.
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